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Author: Admin | 2025-04-27
With the evolution of financial markets, cryptocurrencies have emerged as a popular asset class, gaining the attention of investors in Australia, as well as globally. Bitcoin (BTC) was the first cryptocurrency and is still the largest and most well known.However, trading Bitcoin requires a deep understanding distinct from traditional investments. For Australian investors specifically, navigating the nuances of cryptocurrency trading within our tax and regulatory framework is vital.This guide explains how Bitcoin trading works, which factors influence Bitcoin’s price the most, and the role of technical and fundamental analysis in forming a trading strategy.Note: Trading cryptocurrencies is extremely risky and anyone doing so should only ever invest what they can afford to lose. The cryptocurrency market is unregulated in Australia and traders have no source of redress if something goes wrong.Featured Partners What Is Bitcoin trading? At its core, Bitcoin trading refers to the act of buying and selling Bitcoin in an attempt to capitalise on its price fluctuations. Unlike traditional fiat currencies which are anchored by governmental and institutional policies, Bitcoin operates on a decentralised network known as blockchain. Its price is driven by myriad factors including demand, adoption rates, regulatory news, and broader market sentiments.For traders, there are primarily two approaches:Spot Trading: This involves the actual buying or selling of the Bitcoin asset. Once purchased, the Bitcoin is owned and can be transferred or used as a form of payment.Derivatives Trading: Here, traders don’t own the actual Bitcoin. Instead, they speculate on its future price movements through contracts,
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